Which of the following has the obligation to sell a stock at the strike price when an option is exercised?
A)call holder
B)call writer
C)put holder
D)put writer
E)call holder and put writer

Question

Quizplus · Accepted Answer

The obligation to sell a stock at the strike price when an option is exercised lies with the call writer. The call holder has the right to buy the stock at the strike price, while the put holder has the right to sell the stock at the strike price. The put writer has the obligation to buy the stock at the strike price when the put option is exercised. The call holder and put writer are two different parties with different roles in options trading.

Which of the Following Has the Obligation to Sell a Stock